Inside Dr. Walton’s office, proceed to the office table on the left. There you may find a suitcase that has its opening jammed. To open the suitcase, use the Lobotomy Ice Pick.

Once the suitcase is opened, pick-up the Nurse cap.

After this, a few more cursed dolls may attack you with knives. You may use the revolver, shotgun, or even the ever-reliable rusty pipe.

Right after the battle, exit the room.

Now that you have the nurse’s cap, proceed to the office wing Pharmacy that is right beside Dr. Walton’s office.